Morning Briefing: China’s weak inflation hits markets

Morning Briefing: China’s weak inflation hits markets

China’s weak inflation hits markets
Global stock markets are lower so far Wednesday amid new data from China showing that consumer price increases were worse than expected in September. The CPI rose 1.6 per cent following 2 per cent in August. Analysts had expected 1.8 per cent.

The figures hit markets across the region with some of Japan’s automakers among the losers; overall Tokyo’s Nikkei was off by almost 2 per cent.

European indexes have responded to the news with all major markets trading lower so far this morning. The situation has been exacerbated by lower oil and copper prices.

Toronto and Wall Street are expected to open flat at best.

Latest

1 month ago

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North America (previous session)

US Dow Jones

17,081.89 (-0.29 per cent)

+4.34 per cent

+4.70 per cent

TSX Composite

13,844.73 (+0.86 per cent)

+3.68 per cent

-1.37 per cent

Europe (at 5.35am ET)

UK FTSE

6,295.54 (- 0.74 per cent)

+3.47 per cent

- 1.52 per cent

German DAX

9,939.35 (- 0.93 per cent)

-1.90 per cent

+12.62 per cent

Asia (at close)

China CSI 300

3,406.11 (-1.13 per cent)

+3.81 per cent

+39.22 per cent

Japan Nikkei

17,891.00 (+1.89 per cent)

-0.42 per cent

+19.78 per cent

Other Data (at 5.35am ET)

Oil (Brent)

Oil (WTI)

Gold

Can. Dollar

48.97
(-0.55 per cent)

46.56
(-0.21 per cent)

1174.30
(+0.76 per cent)

U$0.7695

Aus. Dollar

U$0.7251

Russia says no to oil output cut
Russia’s energy minister was not accepting any blame for the global oil supply glut but was clear who is at fault – the US shale producers and OPEC. Alexander Novak told CNBC that his country has not significantly changed the level of output over the last few years while US shale has increased. He said that he doesn’t wish to see shale producers go out of business and noted that many former importers of oil are now producing their own supplies.

Another bank probe underway
US regulators and law enforcement are looking into possible involvement of Goldman Sachs in corruption and money laundering at the Malaysian state investment firm 1Malaysia Development Bhd. The FBI and Department of Justice are at the information gathering stage according to the Wall Street Journal but there is no suggestion of any wrongdoing by Goldman Sachs. The group’s Singapore arm was visited by anti-corruption officials from Malaysia in July relating to an investigating into the 1Malaysia fund.